Overview
- Iran sent its reply through Pakistani mediators on Sunday, and President Trump called the terms “TOTALLY UNACCEPTABLE” on Truth Social.
- Tehran’s response sought an end to fighting on all fronts, guarantees for shipping, lifting of U.S. sanctions and the port blockade, compensation for war damage, and control over traffic in the Strait of Hormuz.
- The Wall Street Journal reported Iran floated diluting part of its highly enriched uranium and moving the rest to a third country, while the IAEA says Iran holds over 440 kg at up to 60% purity, a step from weapons grade.
- The fragile truce was tested as the UAE intercepted two drones it said came from Iran, Kuwait reported hostile drones, and Qatar said a cargo ship was hit, as the U.S. Navy reported turning back dozens of ships and striking two Iranian tankers on Friday.
- Oil prices jumped about $3 a barrel on Monday as the strait stayed largely closed, and Trump plans to press China’s Xi Jinping this week to use Beijing’s leverage with Tehran.